DoD Awards $118M for Construction Machinery Manufacturing, Boosting Defense Logistics Agency Capabilities
Contract Overview
Contract Amount: $11,821,188 ($11.8M)
Contractor: Rosenbauer America LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-15
End Date: 2027-05-14
Contract Duration: 606 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 8511640097!ARFF
Place of Performance
Location: LYONS, MINNEHAHA County, SOUTH DAKOTA, 57041
Plain-Language Summary
Department of Defense obligated $11.8 million to ROSENBAUER AMERICA LLC for work described as: 8511640097!ARFF Key points: 1. Significant contract value of $118.2 million awarded. 2. Full and open competition utilized, suggesting a competitive bidding process. 3. Contract duration of 606 days indicates a substantial project timeline. 4. Focus on Construction Machinery Manufacturing highlights critical infrastructure support.
Value Assessment
Rating: good
The contract value of $118.2 million appears reasonable given the scope of construction machinery manufacturing for defense logistics. Benchmarking against similar large-scale machinery procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process, allowing multiple vendors to bid. This method is generally expected to yield competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized through a competitive process, aiming for value for money in acquiring essential defense equipment.
Public Impact
Enhances the operational readiness of the Defense Logistics Agency. Supports critical infrastructure projects and military deployments. Potentially stimulates the construction machinery manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions in specialized machinery.
- Ensuring long-term maintenance and support for complex equipment.
Positive Signals
- Leverages competitive market for cost-effectiveness.
- Supports a key agency's mission-critical functions.
Sector Analysis
The construction machinery manufacturing sector is vital for infrastructure development and military logistics. This contract aligns with significant government investments in defense readiness and operational support.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the prime contractor's scope.
Oversight & Accountability
The award was made by the Department of Defense's Defense Logistics Agency, indicating established oversight mechanisms for defense procurements. Contract performance will be monitored against delivery schedules and specifications.
Related Government Programs
- Construction Machinery Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Long contract duration may lead to price volatility.
- Potential for supply chain bottlenecks for specialized equipment.
- Dependence on prime contractor for delivery and support.
- Lack of small business participation noted in prime award.
Tags
construction-machinery-manufacturing, department-of-defense, sd, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.8 million to ROSENBAUER AMERICA LLC. 8511640097!ARFF
Who is the contractor on this award?
The obligated recipient is ROSENBAUER AMERICA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $11.8 million.
What is the period of performance?
Start: 2025-09-15. End: 2027-05-14.
What specific types of construction machinery are being procured, and how do they align with current defense infrastructure needs?
The specific types of construction machinery are not detailed in the provided data. However, given the awarding agency (Defense Logistics Agency) and the sector (Construction Machinery Manufacturing), it is likely to include heavy equipment such as bulldozers, excavators, cranes, and specialized vehicles essential for base construction, repair, and logistical support operations in various environments.
What are the potential risks associated with the long contract duration and the reliance on a single prime contractor for specialized machinery?
A long contract duration (606 days) increases the risk of price escalation due to market fluctuations, potential obsolescence of technology, and contractor performance issues. Reliance on a single prime contractor, even if selected through full and open competition, can limit flexibility and create dependency, potentially impacting delivery timelines or maintenance support if unforeseen issues arise with the awarded vendor.
How will the effectiveness of this procurement be measured to ensure it meets the Defense Logistics Agency's operational requirements?
Effectiveness will likely be measured through adherence to the contract's performance work statement (PWS), including timely delivery of specified machinery, meeting quality standards and technical specifications, and successful integration into the DLA's logistical framework. Post-delivery performance metrics, such as equipment reliability and operational uptime, will also be crucial indicators of success.
Industry Classification
NAICS: Manufacturing › Agriculture, Construction, and Mining Machinery Manufacturing › Construction Machinery Manufacturing
Product/Service Code: CONSTRUCT/MINE/EXCAVATE/HIGHWY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Rosenbauer Beteiligungsverwaltung Gmbh
Address: 100 3RD ST, LYONS, SD, 57041
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Limited Liability Corporation, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $11,821,188
Exercised Options: $11,821,188
Current Obligation: $11,821,188
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPE8EC25D0052
IDV Type: IDC
Timeline
Start Date: 2025-09-15
Current End Date: 2027-05-14
Potential End Date: 2027-05-14 00:00:00
Last Modified: 2025-09-16
More Contracts from Rosenbauer America LLC
- 8509503875!fire Truck — $20.0M (Department of Defense)
- 8510316972!fire Truck -Pumper — $16.4M (Department of Defense)
- 8508622440!fire Truck — $5.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)